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1 year ago

What might be a plausible explanation for the extra entry? give at least two possibilities

Business

1 answer:

Schach [20]1 year ago

8 0

Over confidence and Excess Entry are the plausible explanation for the extra entry.

Explanation:

An individual who undertakes the organization, creation, ownership of the business with potential growth.

Over confidence causes business entry mistakes and not been directly tested by economic decisions.

The experimental setting with basic features of business entry situations are created. The findings are consistent with the predictions that over confidence leads to excessive business entry.

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Scenario 9-1 For a small country called Boxland, the equation of the domestic demand curve for cardboard is Q D = 200 − 2P , whe

Ksenya-84 [330]

Answer: a. benefits Boxlandian consumers by $672 and harms Boxlandian producers by $598.50.

Explanation:

Equilibrium price will be at level where quantity demanded equals quantity supplied.

200 − 2P = -60 + 3P

200+60 = 5P

5P = 260

P = $52

Equilibrium Quantity Demanded = 200 − 2P = 200 - 2 * 52 = 96 units

In a no-trade situation the demand in Boxland is 96 units at a price of $52. If they were to buy at the world price of $45, they would benefit;

= (96 * 52) - (96 * 45)

= 4,992‬ - 4,320‬

= $672

Producers however would produce the following at a price of $45;

Q S = -60 + 3P

= -60 + 3(45)

= 75 units

They would be supplying less units and be hurt.

7 0

1 year ago

Kiddy Toy Corporation needs to acquire the use of a machine to be used in its manufacturing process. The machine needed is manuf

xenn [34]

Answer:

Option A net worth -215,906.03

Option B net worth -210, 159.75

It is a better deal to use the machine through lease than purchase it as the net worth is lower.

Explanation:

Purchase the machine:

-164,000 purchase cost

PV of the maintenance cost

$C \times \frac{1-(1+r)^{-time} }{rate} = PV\\$

C -9,000.00

time 10

rate 0.08

$-9000 \times \frac{1-(1+0.08)^{-10} }{0.08} = PV\\$

PV -$60,390.7326

PV of the salvage value

$\frac{Maturity}{(1 + rate)^{time} } = PV$

Maturity 14,000.00

time 10.00

rate 0.08000

$\frac{14000}{(1 + 0.08)^{10} } = PV$

PV 6,484.7088

net worth:

-162,000 - 60,390.73 + 6,484.70 = -215,906.03

PV of the lease: (annuity-due)

$C \times \frac{1-(1+r)^{-time} }{rate} (1+rate)= PV\\$

C 29,000.00

time 10

rate 0.08

$29000 \times \frac{1-(1+0.08)^{-10} }{0.08} (1+0.08) = PV\\$

PV $210,159.7494

6 0

2 years ago

If frost in Florida reduces the quantity of vegetables sold by 20 percent and increases their retail price by 30 percent, one ca

Anit [1.1K]

Answer: The supply of vegetables has shifted to the left along an inelastic demand curve

Explanation: The quantity of vegetables sold has been reduced by 20 percent, which simply means the aggregate market supply curve has experienced a drop/decrease and that is usually indicated by a complete shift of the supply curve to the left.

Furthermore, we can determine easily if the demand is elastic or inelastic, since the question has stated the percentage change in quantity demanded as 20% and the percentage change in price as 30%.

The coefficient of elasticity is calculated as

E = %change in quantity demanded/%change in price

E = 20/30

E =0.66

Since the coefficient of elasticity is less than 1, then it means demand is inelastic.

3 0

1 year ago

Read 2 more answers

People end up tossing 12% of what they buy at the grocery store (Reader's Digest, March, 2009). Assume this is the true populati

Marina CMI [18]

Answer:

Consider the following calculations

Explanation:

People end up tossing 12% of what they buy at the grocery store (Reader's Digest, March, 2009). Assume this is the true population proportion and that you plan to take a sample survey of 540 grocery shoppers to further investigate their behavior.

a- Show the sampling distribution of ( p¯ ), the proportion of groceries thrown out by your sample respondents

sampling distribution of ( p¯ ) is normal with

mean = 0.12 and

standard error = sqrt(p(1-p)/n) = sqrt(0.12*0.88/540) =0.0140

b- what is the probability that the sample proportion will be within ±.03 of the population proportion?

z value for 0.03 difference, z=0.03/0.014 =2.14

The required P= P( -2.14<z<2.14) = P( z <2.14) – P( z <-2.14)

=0.9838 - 0.0162

=0.9676

c- what is the probability that your survey will provide a sample proportion within ±.015 of the population proportion?

z value for 0.015 difference, z=0.015/0.014 =1.07

The required P= P( -1.07<z<1.07) = P( z <1.07) – P( z <-1.07)

=0.8577 - 0.1423

=0.7154

d- What would be the effect of taking a larger sample on the probabilities in parts (b) and (c)? Why?

Taking a larger sample will decrease the standard error. The probabilities in parts (b) and (c) will increase.

8 0

2 years ago

Melon Lawn Co. advertises its new XJ200 lawn mower. Salespersons describing the XJ200 on behalf of Melon Lawn describe it as a "

kramer

Answer:

c. puffery

Explanation:

Puffery happens when advertisers are trying to encourage people across different techniques to purchase a product or service.

A business can send an amusing advertisement about its product, contrast the product to a similar item, mention product details, or make broad statements about the product that can not be proven to be true.

7 0

1 year ago